Early Extinguishment of Bonds Extinguishment of Bonds Venzuela Co. is building a new hockey arena...
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Early Extinguishment of Bonds Extinguishment of Bonds Venzuela Co. is building a new hockey arena at a cost of $2,500,000. It received a down payment of $500,000 from local businesses to support the project and now needs to borrow $2,000,000 to complete the project. It decides to issue $2,000,000 of 10.5%, 10-year bonds. These bonds were issued on January1, 2021, and pay interest annually on each January 1. The bonds yield 10%. Instruc(ons a. Prepare the journal entry to record the issuance of the bonds on January 1, 2021. b. Prepare a bond amor1za1on schedule up to and including January 1, 2025. c. Assume that on July 1, 2024, Venzuela Co. re1res half of the bonds at a cost
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